Farmers are cashing in on a surprise April grain rally that defied bearish forecasts. In April, December ‘16 corn futures prices climbed 35 cents to 40 cents, to a high of $4.09. The November ‘16 soybean contract rose 50 cents in April to a high of $10.23 from the March low. Wheat also gained 50 cents to 60 cents, rising to $5.18.
What’s behind the ag market rally? Big speculative fund money, South America weather woes, a weakening dollar and improved exports are all helping to improve opportunities for farmers to sell. Economists had predicted net farm income could drop about 50% from 2013 highs. But the boost in prices could be brightening the outlook in farm country.